6. What assessment has the Minister made of the level of local procurement by public bodies in South Wales West? OQ55752

South Wales West procurement spend, at local authority level, in 2018-19 was £588 million with 61 per cent spent in Wales. We are working, with colleagues, to deliver national procurement frameworks regionally and to generate greater economic and well-being outcomes. The foundational economy programme is also working to identify opportunities for localising procurement expenditure. 

Thank you for that, Minister. Now, data held for the latest full financial year of 2018-19 show that Wales-based suppliers won only 55 per cent of total local authority and NHS contracts in Wales. In other words, 45 per cent of contract spend was lost outside of Wales. We know that Scotland retains around 70 per of its contracts within its borders. We also know that supporting local companies by encouraging them to tender and by awarding them public sector contracts can have a significant impact on the local economy and create jobs. Do you, therefore, accept that the Welsh Government needs to do more by working with bodies such as Swansea council and Swansea bay health board to ensure that more public contracts are awarded to local companies?

I'm absolutely keen to work with Swansea council and with the health board to see what more we can do in order to ensure that local companies win those contracts. The data that I referred to in my response, of course, only referred to local authorities, because other public sector organisations, such as health boards and others, don't necessarily reside in a single area, so we haven't been able to include them in the analysis. So, it's worth just bearing that in mind as a bit of a health warning for that data.

But I absolutely agree that there is more that we can do, and we can do that through our approach on the foundational economy programme. We've engaged the Centre for Local Economic Strategies to work with clusters of public services boards across Wales to identify opportunities for localising procurement expenditure. That's really important and exciting work, which I think has the opportunity to be quite a game changer there.

We also, of course, have the foundational economy challenge fund, and Swansea council is delivering one of those projects, which aims to increase the proportion of construction contracts that are won by local contractors here in the area. So, again, that's an important piece of work, and the learning that we have from that we can spread across Wales as well. And I think that the pandemic has provided us with huge opportunities to support and engage with local businesses in a way that we haven't been able to support them before and engage with them before. There are some excellent examples of how local engineering firms and others are changing the way that they produce things in order to help with the effort by moving into production of PPE and so on. That's been fantastic in terms of supporting local business but also giving that certainty to other public services in terms of that supply chain of important goods during the pandemic.